Question: NEED THE WHOLE EXPLAINED SOLUTION IN 20 MINS OR GET DOWNVOTE FOR SURE. The risk-free rate of return Rp is 9 percent. The expected rate

NEED THE WHOLE EXPLAINED SOLUTION IN 20 MINS OR GET DOWNVOTE FOR SURE.

The risk-free rate of return Rp is 9 percent. The expected rate of return on the market portfolio Rm is 13 percent. The expected rate of growth for the dividend of Platinum Ltd. is 7 percent. The last dividend paid on the equity stock of firm A was Rs. 2.00. The beta of Platinum Ltd. equity stock is 1.2. i. Calculate the equilibrium price of the equity stock of Platinum Ltd.? ii. Also, calculate the equilibrium price when The inflation premium increases by 2 percent? The expected growth rate increases by 3 percent? O The beta of Platinum Ltd. equity rises to 1.3

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